Entering No Tax on Tips No Tax on Overtime in EasyACCT

What changed in 2025?

The One Big Beautiful Bill (OB3), also known as the “Working Families Tax Cut Act," became law on July 4, 2025 as Public Law 119-21. The tax breaks received from this act will be taken when individuals file their personal income taxes.  There are no changes to tax withholdings on paychecks. However, new codes have been added to the W-2 to track overtime and tips to help taxpayers file their tax return.

How to track overtime and tips in EasyACCT?

EasyACCT has implemented w2 codes 12TT to track the 0.5 overtime and 12TP to track the tips. (If an additional GP item is set up for cash tips, code 12TP applies). 

• Code 12TT should be applied to the GP Item for Overtime
• Code 12TP should be applied to the GP Item for RTP (reported tips)

For example:

Why are the taxes on my paychecks still the same if this is supposed to be “no tax on tips/overtime”?

The tax break for individuals comes when they file their income tax return at the end of the year.  Tips and overtime are still taxable on paychecks.